- The $35 million round was led by Parlay Capital and Data Point Capital, with proprietary trading firms among the investors.
- Partner brands supply the audience while every trade executes on ProphetX’s exchange and clears through its clearinghouse.
- Active users and assets on the platform rose 50% in the first 30 days after June’s nationwide launch.
- ProphetX is targeting a tripling of trading volume in 2026, driven by B2B partnerships and wider institutional coverage.
NEW YORK – ProphetX closed a $35 million funding round on July 28 and said part of the money will go to scaling a business-to-business platform that lets other consumer brands offer federally regulated sports event contracts. The round closed seven weeks after the company announced Commodity Futures Trading Commission approval to run both the exchange and the clearinghouse behind those contracts.
The Round And Who Wrote The Checks
Parlay Capital and Data Point Capital led the $35 million round, which ProphetX said will go to product development, deeper liquidity across its markets, and the B2B platform and partnerships.
Proprietary trading firms sit alongside gaming and sports-focused funds on the rest of the list. Belvedere Trading, Chicago Trading Company Ventures and Ematiq took part, as did principals of Consolidated Trading and White Swan Data. The venture side brought in Sharp Alpha Advisors, FDJ Ventures, Impellent Ventures, Connexa Capital, Greenwave Ventures and the Operating Group.
“Prediction markets are now a permanent fixture of the American financial landscape, and ProphetX intends to lead them,” Dean Sisun, ProphetX’s chief executive, said in the announcement. Greg Buonocore, chief executive of Parlay Capital, described the company as “building the industry-leading infrastructure that will define how everyday Americans and institutional investors alike participate in sports prediction markets.”
ProphetX reported that active users and assets on the platform grew 50% in the first 30 days after it launched nationwide. It set a target of tripling trading volume during 2026 on the strength of B2B deals, broader institutional coverage and its Request for Quote parlay mechanism, which lets traders build and price multi-event combinations directly with a counterparty.
What The B2B Product Actually Sells
The arrangement announced July 23 with skill-based gaming platform Players’ Lounge is the template. Players’ Lounge integrated the exchange into its own product. Order matching stays on the federally registered venue, and each trade settles at the clearing arm ProphetX registered beside it. Nobody trades until an identity check clears. Opening markets cover the NFL, the NBA and international soccer, and the contract list grows from there.
ProphetX’s markets are sports-native throughout, covering game results, player props, brackets and championship futures rather than the political contracts that drive election odds.
Players’ Lounge supplies the audience. Since 2016 it has processed more than $250 million in wagers on skill-based games. The regulated venue and the clearing do not move.
“This isn’t sports betting dressed up in new clothes,” said Jake Benzaquen, ProphetX co-founder and chief commercial officer. “It’s a federal exchange where the crowd sets the price and every participant is on a level playing field.”
A designated contract market and a derivatives clearing organization are federal registrations granted by the CFTC, not state gaming licenses. Both sit with ProphetX. The company said trading through the Players’ Lounge integration is open to eligible users in applicable U.S. jurisdictions.
ProphetX said Players’ Lounge is the first of several B2B partnerships it expects to launch this summer and later in the year.
The Federal Stack Underneath
ProphetX filed its designated contract market and derivatives clearing organization applications with the CFTC in November 2025 and announced approval on June 11, saying the dual registration would let it run a vertically integrated marketplace where users trade, clear and settle event contracts under CFTC oversight. It launched nationwide a week later, on June 18. The company was founded in 2018 and was licensed in the United Kingdom that year as a peer-to-peer marketplace for sports event trading.
Owning the clearinghouse as well as the exchange is what separates ProphetX from venues that list contracts and clear them elsewhere, and it is the piece the B2B pitch rests on, because a partner integration touches only the front end.
The federal lane has already produced its own enforcement questions. In May, Polymarket and Kalshi faced their first insider trading reckoning.
ProphetX has not published a timetable for the additional B2B partnerships beyond the summer and later-2026 window, and the tripling target is measured against the full 2026 calendar year.
